Teach Teens How To Handle Finances – Perfect Holiday Gift For Teens
Since credit card debt in this country has reached epidemic proportions it would be irresponsible of us, as parents, not to teach our teens how to handle credit cards and their finances before we send them off to college. Since credit card companies start to send their offers even before college age, it really is the perfect holiday gift we can give our teens to teach our teens how to handle credit cards and finances before we cut them loose in the world.By teaching our teens how to handle their finances we are allowing them the opportunity for them to start to make informed decisions about money matters. The financial decisions that our teens make early in their lives will determine whether they will have a prosperous financial future or a dismal one. We can give the perfect holiday gift for our teens by helping them make the right financial decisions early so that they do not have any financial regrets later in life.If we start to teach our teens how to handle their finances and credit cards while they are still in high school they will be much better prepare when they are in college and faced with the many offers the credit card companies will send them. Here are some ways we can begin to teach our teens how to handle credit cards and their personal finances:
Take an active role in providing our teens with financial information. Have them observe the way we use our credit, of course, we ourselves have to be responsible in our spending habits to be good role models to our teens.
Keep the lines of communication open and discuss with them the best ways to save and the best ways to invest their money. We need to teach them the value of savings. We live in a world of having to have everything now versus waiting until we can actually afford something through savings. We have to try and stop this pattern.
Open a saving account in their name. Nothing will teach our teens how to handle their finances better than having their own savings account. This makes them more responsible. They will tend to think more about what they purchase because they will actually have to withdraw the funds from their own account.
Insist that when they get money for their birthday, holidays or graduation, that they deposit at least one half in their savings account. This encourages and enforces the message you are trying to convey to them.
Teach teens how to handle their finances by showing them the difference between their needs, their wants and their desires. This lesson alone will help them continue to make good financial decisions in their future.
Try and seek out innovative money management tools that are designed specifically for your teen. There is one program that has been featured on the Today Show, the CBS Early Morning Show, and various other news programs and magazines that offers a way to teach your teens how to manage their finances with an online allowance and chore system. The system is set up to act as a tool for parents in helping teach financial responsibilities to their children. It includes chore charts and setting up allowances for teens. Parents are able to move money to their teens cards electronically. Parents have full control over the card and can monitor how the child is spending on the card. This helps parents teach proper money management to their teens. It also allows teens to upload pictures and art to create their very own card design.These card are becoming very popular with both parents and teens because it give teens flexibility and spending independence while parents are still in control over the card. The cards teach teens how to handle credit cards and their finances and teaches them about personal financial management and responsibilities. By using these cards, teens are able to learn about managing their finances to avoid getting into credit card debt in the future.